BMW ‘has clearly had enough of SA labour situation’

2013-10-04 15:27

Financial services group Nomura believes BMW’s scrapping of expanded investment in the country shows it has had enough of labour issues.

“We hear of these things all the time from companies but they normally are not in the public eye and in the media because they are decisions made in quiet back rooms by management and not trumpeted,” Nomura analyst Peter Attard Montalto said in a statement today.

“However, BMW has clearly had enough of the labour situation and the risk/reward of further investment simply doesn’t make sense for them.”

French news agency Agence-France Presse reported yesterday the German car maker had lost an opportunity to compete for production of a new model because of ongoing strikes.

“The ongoing strike action affects the reputation of South Africa to be a reliable partner for export,” local BMW spokesperson Guy Kilfoil was quoted as saying.

Production had been slashed from 350 to 85 units a day, he reportedly said.

A strike in the automotive industry by National Union of Metalworkers of SA (Numsa) members has entered its fourth week.

Numsa spokesperson Castro Ngobese said workers wanted a double digit wage increase and changes to conditions of employment, such as the banning of labour brokers, establishment of a short-time workers’ fund, and a transport allowance.

He said the strike would continue until a deal was agreed on.

Today, Business Day newspaper featured an editorial on BMW and criticised President Jacob Zuma’s economic policy approach.

“The president is a politician. BMW is a manufacturer. Only one of them knows what they are talking about,” the editorial read.

Attard Montalto said investors were keeping a close eye on the country, not only in the car sector but with Eskom’s delayed construction of power stations and labour struggles in the platinum and gold sectors too.

“There are many other companies thinking the same thing because of labour issues,” he said.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News
 

6 myths about male cancer

It is important to be aware of the most prevalent cancer diseases amongst men in our country.

 
 

You won't want to miss...

Who are the highest paid models of 2017?
10 gorgeous plus-sized models who aren't Ashley Graham
5 top leg exercises for men
10 best dressed men of 2017
Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.